Bank Of Baroda Fixed Deposit Rates-2024
Introduction:
Bank of Baroda (BOB) is a well-established Indian nationalized bank offering a wide range of banking and financial services, including fixed deposits (FDs).
Bank of Baroda's fixed deposits are highly popular among customers looking to secure a portion of their savings for a set period.
Depositors need to invest a lump sum at the account opening, and the interest rates provided are based on the chosen tenure.
Opening an FD with the Bank of Baroda offers several advantages, notably higher interest rates compared to regular savings accounts.
Key Features and Advantages of Bank of Baroda Fixed Deposits
Enhanced Interest for Seniors: Senior citizens receive an additional interest rate of 0.50% p.a. above the standard rates.
Minimum Deposit Requirement: The minimum amount required to open an FD with Bank of Baroda is Rs 10,000.
Nomination Facility: The bank offers a nomination facility to secure the interests of beneficiaries.
Loan Against Deposit: Depositors can avail loans up to 90% of their fixed deposit amount.
Interest Disbursement: Interest is paid out at the time of maturity.
Variety of Deposit Schemes: Bank of Baroda offers several fixed deposit schemes including Short Deposit, Baroda Double Dhamaka Deposit Scheme, Baroda Advantage Fixed Deposits Non-Callable, Fast Access Deposit, BOB Suvidha Fixed Deposit Scheme, Regular Income Plan, Monthly Income Plan, Baroda Tax Savings Term Deposit, and Money Multiplier Deposit.
Bank of Baroda FD Interest Rates 2024
Tenure
Interest
Rates (PA)
Interest Rate
for Seniors (PA)
15 days - 1 month 15 days
4.5%
5%
1 month 16 days - 2 months 29 days
5.5%
5%
3 months - 5 months 27 days
5.6%
6.1%
5 months 28 days - 6 months 27 days
5.75%
6.25%
6.15%
6.65%
8 months 27 days - 11 months 25 days
6.25%
6.75%
11 months 27 days - 11 months 30 days
7.1%
7.6%
11 months 27 days - 11 months 30 days
6.25%
6.75%
1 year - 1 year 1 month 3 days
6.85%
7.35%
Types of Bank of Baroda FD Schemes
Baroda Tax Savings Term Deposit Account:
Investment Benefits: Eligible for income tax deductions under Section 80C.
Variants: RIRD (cumulative), MIP (monthly interest payout at discounted rates), and QIP (quarterly interest payout).
Tenure: 5 – 10 years.
Deposit Limits: Minimum Rs. 100 (further in multiples of Rs. 100), maximum Rs. 1.5 lakh annually.
Interest Benefits: Senior citizens get an additional 0.50% p.a.; benefits also for bank staff and senior ex-staff.
Withdrawals: Premature closure allowed post 5 years under specific conditions, including reduced interest rates.
Baroda Suvidha Flexible Fixed Deposit Scheme:
Tenure: 1 – 5 years.
Deposit Limits: Minimum Rs. 5,000, no maximum limit; minors above 10 years capped at Rs. 1 lakh.
Interest Benefits: Additional rates for seniors and bank staff.
Flexibility: Overdraft facility available, allowing flexible withdrawals.
Premature Withdrawal: Conditions apply, including potential interest rate reductions.
Monthly Income Plan (MIP):
Tenure: 1 – 10 years.
Deposit Limits: Minimum Rs. 1,000, no maximum limit; minors capped at Rs. 1 lakh.
Interest Benefits: Additional interest for seniors and bank staff.
Income Option: Guaranteed monthly interest payouts, overdraft facilities.
Security: Accepted as security by government departments.
Quarterly Income Plan (QIP):
Tenure: 1 – 10 years.
Deposit Limits: Minimum Rs. 1,000, no maximum limit.
Income Option: Fixed quarterly income.
Flexibility: Overdraft facility up to 95% of the balance.
Premature Closure: Possible under conditions, with reduced interest penalties.
Motor Accident Claims Annuity Deposit (MACAD):
Tenure: 3 – 10+ years, based on court directives.
Deposit Limits: Based on monthly annuity needs; no upper limit.
Specific Use: Facilitates court-ordered motor accident claims.
Premature Closure: No penalties, conditions apply.
Capital Gain Account Scheme (CGAS), 1988:
Purpose: For depositing long-term capital gains for tax benefits.
Accounts: Type A (savings or current), Type B (TDR/STDR).
Tenure: Depends on the specific capital gains section.
Deposit Limits: Minimum Rs. 1,000, no maximum.
Interest Rate: Determined by the bank, no special rates for seniors or staff.
Premature Withdrawal: Penalty-free under conditions.
These diverse FD schemes from Bank of Baroda cater to various needs, offering tax benefits, income options, and flexibility for different types of depositors.
Baroda Advantage Fixed Deposits (Non-Callable):
Purpose: Offers higher interest rates in exchange for no premature withdrawal on deposits above Rs. 15 Lakhs.
Tenure: 1 – 10 years.
Deposit Limits: Minimum Rs. 15 Lakhs; no upper limit, minors capped at Rs. 1 Lakh.
Interest Benefits: Preferential rates, extra 0.50% p.a. for senior citizens and additional benefits for bank staff.
Interest Payout Options: Maturity (RIRD), monthly (MIP), and quarterly (QIP).
Loan/Overdraft: Up to 85% of the deposit balance.
Premature Closure: Allowed in cases like the depositor's death.
NRO Non-Callable FD:
Purpose: For NRO account holders, similar benefits and restrictions as non-callable FDs.
Tenure: 1 – 10 years.
Deposit Limits: Minimum Rs. 15 Lakhs, maximum Rs. 2 Crores.
Interest Payout: Similar to standard term deposits.
NRE Rupee Fixed Deposits:
Purpose: Enables NRE account holders to deposit foreign earnings converted to INR.
Tenure: 1 – 10 years.
Deposit Limits: Minimum Rs. 15 Lakhs, maximum Rs. 2 Crores.
Interest Rate: Paid quarterly for cumulative deposits.
Premature Closure: Allowed after 1 year with an interest penalty.
NRO Rupee Fixed Deposits:
Taxation: Subject to a 30.90% withholding tax, surcharges may apply.
Loan/Overdraft: Available, supporting flexible financial needs.
Interest Payout: Quarterly.
Resident Foreign Currency Accounts:
Purpose: For NRIs returning to India, maintaining deposits in foreign currencies.
Tenure: 1 – 5 years.
Interest Rates: Comparable to FCNR deposits.
Premature Withdrawal: No interest if withdrawn before 1 year.
Rupee Linked Foreign Currency Deposit Scheme:
Purpose: Allows NRIs to deposit foreign currencies converted to INR.
Tenure: 1, 2, and 3 years.
Deposit Limits: Minimum USD 10,000 or equivalent.
Interest Payout: At maturity, including principal; forward contract options available.
Premature Withdrawal: Includes cancellation of forward contracts, with potential losses.
Foreign Currency Linked Rupee Deposits (FCLRD) Scheme:
Purpose: Combines benefits of NRE and FCNR deposits, minimizing exchange rate risk.
Tenure: 1 year.
Deposit Limits: Minimum USD 10,000 or equivalent.
Interest Payout: At maturity, no interest if withdrawn before 1 year.
Foreign Currency Non-Resident B Term Deposit Scheme:
Purpose: Ensures repatriation of maturity proceeds in foreign currency, tax-free.
Tenure: 1 – 5 years.
Interest Payout: Half-yearly; no interest for early withdrawal within the first year.
This summary condenses the extensive range of FD products offered by Bank of Baroda, each tailored to different depositor needs, from NRIs to residents seeking higher returns or specific tax advantages.
How to Open a Fixed Deposit Account with Bank Of Baroda
You can open a fixed deposit (FD) account with Bank of Baroda through various methods such as Mobile App, Internet Banking, or offline at a branch.
1) Internet Banking:
Log into your Bank of Baroda NetBanking account.
Select the ‘Open Fixed Deposit’ option.
Complete all required fields, including nominee details and maturity instructions.
Once the information is successfully submitted, your FD account will be booked.
2) Mobile App - Bank of Baroda Bank App:
Download and sign into the Bank of Baroda Bank App.
Navigate to the ‘Open Fixed Deposit’ option.
Enter all necessary details, nominee information, and set maturity instructions.
After submitting all the information, your FD account will be activated.
3) Offline - Bank of Baroda Branch:
Visit your nearest Bank of Baroda branch.
Fill out the Bank of Baroda FD application form and submit it along with the necessary documents and the deposit amount.
Upon successful processing of your application, you will receive an FD receipt from the bank.
Qualifications for Opening a Fixed Deposit Account at Bank Of Baroda
Bank of Baroda allows fixed deposit investments starting from as low as Rs. 5000, with no maximum limit on these investments.
The following individuals and entities are eligible to open a fixed deposit account at Bank of Baroda:
Individuals
Partnership firms
Minors
Visually-challenged individuals
Illiterate persons
Sole proprietorships
Religious, charitable, and educational institutions
Hindu Undivided Families (HUFs)
Trusts
Clubs, societies, and associations
Joint account holders (two or more members)
Panchayats and municipalities
Limited companies
Necessary Documents to Open a Fixed Deposit Account at Bank Of Baroda
Proof of Identity:
PAN card
Driving license
Passport
Senior Citizen ID card
Voter ID card
Photo ration card
Government-issued ID card
Proof of Address:
Telephone bill
Passport
Bank statement with a cheque
Electricity bill
ID card issued by the Post Office
Early Withdrawal of Bank Of Baroda Fixed Deposit
Bank of Baroda allows premature withdrawal on all fixed deposits, except for tax-saving fixed deposits. For deposits under Rs. 5 lakhs that have been held for at least 12 months, no penalty is charged for early withdrawal.
However, deposits exceeding Rs. 5 lakhs are subject to premature withdrawal penalties.
Role of Fixed Deposits in an Investment Portfolio
Investing in market-linked instruments carries risks, particularly when aiming for higher returns.
To achieve a balanced financial portfolio, it's crucial for investors to include safer investment options as well.
Fixed deposits offer a secure investment avenue with guaranteed returns, contrasting with higher-risk options.
Thus, even if investors incur losses from other ventures, they can offset some of those losses through the stable earnings from fixed deposits.
This strategy can help maintain financial stability in their overall investment portfolio.
Benefits of Investing in a Fixed Deposit Account
IFixed deposit accounts offer several advantages that make them appealing to investors:
Stable Returns: These accounts provide a constant interest rate, ensuring predictable and steady returns.
Low Risk: As FDs are not impacted by market volatility, they are considered low-risk, making them suitable for conservative investors.
Capital Preservation: The principal amount is secure, and investors are assured of receiving their initial investment plus the accrued interest at the end of the maturity period.
Flexible Tenure Options: Investors can select from various tenure lengths offered by banks, ranging from a few months to several years, to align with their financial objectives.
Ease of Investment: Setting up a fixed deposit account is easy, requiring only minimal paperwork and a straightforward application process.
Regular Income Stream: Particularly beneficial for retirees, FDs can provide a consistent income stream through periodic interest payouts (monthly, quarterly, or annually).
Loan Facilities: Fixed deposits can also serve as collateral for loans, offering financial flexibility while keeping the deposit intact.
Tax Benefits: Certain types of fixed deposits qualify for tax deductions under specific sections of the Income Tax Act, promoting long-term savings.
No Market Dependency: The performance of FDs is independent of market conditions, offering stability regardless of economic fluctuations.
Ideal for Short to Medium-Term Goals: FDs are well-suited for meeting short to medium-term financial objectives, such as purchasing a vehicle, funding education, or planning a holiday.
Drawbacks of Fixed Deposit Accounts
Fixed deposit accounts come with certain limitations, which are outlined below:
Taxation on Interest: The interest income from fixed deposits is taxable under "Income From Other Sources" when you file your Income Tax Returns (ITR). For those seeking tax-free earnings, options like Tax-Saver FDs, ULIPs, PPF, and government bonds may be more suitable.
TDS Applicability: TDS (Tax Deducted at Source) is deducted from the interest earned on fixed deposits, which can reduce the overall returns from your investment.
Comparatively Lower Interest Rates: Generally, fixed deposits offer lower interest rates, typically between 5% to 9% per annum, which may be less than other investment avenues, potentially limiting your investment growth.
Interest Rates and Inflation: Sometimes, the interest rates on fixed deposits may not keep up with inflation, leading to a decrease in the real value of your returns over time.
Fixed Interest Rates: Unlike other investments where rates might fluctuate, fixed deposits maintain a constant rate throughout their tenure. This means returns do not increase even if market or economic conditions improve.
Limited Access to Funds: Your funds are locked in for the duration of the deposit, restricting access to your money. Early withdrawal is possible but usually incurs penalties, affecting your total returns.
Understanding Loan Against Fixed Deposit
Investors with fixed deposits can secure a loan against their FD holdings. The maximum loan amount available can differ from one bank to another and is typically a specified percentage of the fixed deposit value.
The interest rates for loans against fixed deposits are generally lower than those for unsecured loans. Investors looking to take advantage of this should carefully compare interest rates.
The repayment period for such a loan is usually capped at the maturity term of the associated fixed deposit.
Tax Implications on Fixed Deposit Earnings
Interest earned from fixed deposits is subject to Tax Deducted at Source (TDS) according to the rules set forth in the Income Tax Act. This interest income is then reported on Income Tax Returns under "Income from Other Sources."
The Income Tax Department applies the TDS against the individual's total tax liability. However, TDS on interest income is only deducted when the total interest earnings across all sources exceed Rs. 40,000 annually.
If earnings are below this threshold, individuals should submit Form 15G/H to the financial institution to avoid TDS. Form 15G/H can also be submitted for interest earnings above Rs. 40,000, but in such cases, individuals must ensure they meet any remaining tax obligations themselves.
Additionally, if an individual invests in a tax-saving FD, they are eligible to claim a tax exemption on the principal amount up to Rs. 1.5 lakh per financial year.
What is a fixed deposit?
A fixed deposit is a type of savings account where money is deposited for a fixed period and earns interest at a predetermined rate.
How safe are fixed deposits?
Fixed deposits are considered very safe as they are not affected by market fluctuations and often guaranteed by the bank or financial institution.
Can I withdraw money from my fixed deposit before maturity?
Yes, but early withdrawal may incur penalties and result in lower interest earnings.
Do fixed deposits offer tax benefits?
Tax-saver fixed deposits qualify for tax deductions under Section 80C of the Income Tax Act but come with a lock-in period.
What documents are required to open a fixed deposit account?
Typically, you need identity proof, address proof, and sometimes a PAN card, along with the completed application form.
Author
Harish Malhi
Read More 📖
West Bengal Caste Certificate
June 22, 2024
Star Health Insurance Customer Care
June 22, 2024
SBI Savings Account
June 22, 2024
How to Check FASTag Balance
June 22, 2024
Bhoomi Online - Karnataka's Land Records & RTC
June 22, 2024
Current Petrol Price in Bangalore
June 22, 2024
View More